Preem invests in renewable fuels production

An aeroplane at an airport in Sweden
Photo: Most Photos

Preem will repurpose its refinery in the Gothenburg region, an investment worth EUR 500 million (SEK 5.5 billion). The investment represents an important step for the company as it phases out fossil production in favour of renewable fuels for road and air transport.

The reconstruction of the Lysekil facilities will begin in 2024 and is planned to be completed in 2027. It will enable the company to become a leading player in renewable aviation fuel in Northern Europe. 

“The demand for sustainable aviation fuels is rapidly increasing, and we are already in discussions with several major airlines. Both increased awareness and EU regulations drive the market. Through this investment, we are also positioning Sweden as one of the most important producers of sustainable aviation fuels in Europe,” said Magnus Heimburg, CEO at Preem, in a press release.

The repurposing of the Lysekil refinery will provide Preem with an additional 1.2 million cubic meters of renewable production capacity. At the same time, fossil fuel production capacity will be reduced by the same amount. 

The investment is the second in a series of large-scale projects in the Gothenburg region, investments worth around EUR 900 million in total. The first, the Synsat project, is ongoing and is expected to be completed in 2024.

Did you know... 

  • Gothenburg was recently selected as one of ten mentor cities in a smart city initiative run by the European Commission. Gothenburg will support 65 other European cities in the art of strengthening innovation in the green transition.
  • Together with industry, the Port of Gothenburg is focusing on cutting carbon emissions of long-distance transport by 70% until 2030, within the Transzero Initiative.
  • The chemicals cluster in Stenungsund, which employs 2,500 people in the region, plans to invest EUR 900 million to reduce carbon emissions in the value chain by one million tonnes per year.  
  • In close partnership with the construction and property industry, Gothenburg is taking great strides towards climate-neutral construction and more reuse. Well over a hundred stakeholders are participating.